Tata Technologies, a subsidiary of automobile major Tata Motors, is an engineering services company that offer product development and turnkey solutions to global original equipment manufacturers (OEMs) and their tier-1 suppliers.

As per the Draft Red Herring Prospectus (DRHP), Tata Technologies IPO will be a complete offer for sale (OFS) wherein its existing shareholders, including Tata Motors, Alpha TC Holdings Pte and Tata Capital Growth Fund-I, will offload their stake in the company. 

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Tata Motors currently holds a 74.69% stake in the  product engineering company. Meanwhile, Alpha TC Holdings Pte holds 7.26% stake and Tata Capital Growth Fund has 3.63% shareholding in Tata Technologies.

Tata Technologies IPO details

Tata Technologies IPO consists of an OFS of 9.57 crore shares of face value of ₹2 each. Promoter Tata Motors will sell up to 8.11 crore shares, Alpha TC Holdings Pte plans to sell up to 97.16 lakh shares, while Tata Capital Growth Fund I will sell up to 48.58 lakh shares of the company.

As per the DRHP, the weighted average cost of acquisition per equity share by Tata Motors is ₹7.40 per share, for Alpha TC Holdings Pte. Ltd is ₹25.10 per share and for Tata Capital Growth Fund I is ₹25.10.

Also Read: Tata Technologies IPO: Current GMP, possible issue price you can expect

The IPO price and dates are yet to be announced by the company. 

Tata Technologies recognizes KPIT Technologies, L&T Technology Services, and Tata Elxsi as its listed competitors.

The book running lead managers to the Tata Technologies IPO are JM Financial, Citigroup Global Markets India and Bofa Securities India, while the IPO registrar is Link Intime India.

Financials

Tata Technologies reported a net profit of ₹436.99 crore upon a total revenue of ₹3,578.38 in FY22. 

Its net profit for the April-December period of FY23 was ₹407.47 crore and revenue during the period stood at ₹3,052.30 crore.

Tata Technologies IPO GMP

Tata Technologies IPO GMP or grey market premium is around ₹80 – ₹82, according to the primary market observers. This means the shares of Tata Technologies were trading ₹80-82 higher than their actual value in the grey market.

Updated: 03 Jun 2023, 04:50 PM IST